Downtown New Buffalo project to resume

Developer plans condominiums, retail, parking.

Developer plans condominiums, retail, parking.

November 28, 2006|SHARON DETTMER Tribune Correspondent

NEW BUFFALO -- A huge and muddy void in the lives of New Buffalo residents may soon be filled. Construction is slated to resume in December on Fountain Square Development, which is designed and engineered by Homewood, Ill.-based Gierczyk Inc. The company issued a letter to prospective Fountain Square homeowners Nov. 9, indicating that by Christmas, "we anticipate that the parking garage will be started. Shortly thereafter, framing will begin on Buildings 1, 2 and 3 and we are hoping to have the second floor on (constructed) just after February 1, 2007." The New Buffalo Planning Commission approved the company's design and engineering plans in April 2005 to build a 20,000 square-foot retail development encompassing almost an entire city block in downtown New Buffalo. The proposed central core development would be wedged on the block bordered by Whittaker, Thompson, Mechanic and Merchant streets. One of the buildings to be constructed for the project is a 62-unit residential condominium structure. Other buildings will feature retail space, a private indoor pool and fitness center and a pedestrian-focused plaza. An underground parking facility, featuring 124 stalls, is also part of the construction plan. A massive hole was excavated months ago, in preparation to begin construction. However, all activity at the site came to a halt abruptly, leading many residents to ask, "Why?" when the city and its residents were left with a big, muddy hole in the center of the city. There was much speculation, but few real answers to explain the halt in construction. James Gierczyk's design-build company recently joined forces with Lake Erie Land Co. to form Chesterton Development Partners LLC in order to purchase Coffee Creek Center in Chesterton, Ind. The developer has been focusing on breathing new life into urbanized, residential and commercial development that failed to generate previously anticipated buyer interest in the project. That left many concerned that the company, with more than $1 billion in industrial, processing, commercial, retail and residential projects in five states, had turned its focus elsewhere. However, the lack of construction at Fountain Square Development seems due to a legal rift between Gierczyk's company and the city of New Buffalo over the location of a storm sewer, according to New Buffalo Mayor Bob Westergren. A recent letter sent to prospective Fountain Square Development condominium owners, Gierczyk indicated that during the excavation stage, the company discovered that "the city had placed their storm drain on our property." "Until we were able to resolve the storm drain issue with the city of New Buffalo, our project was unable to move forward," the letter said. Westergren said he is often asked by residents when construction would begin. Until recently, he had no answer. "We are not going to live with a big hole in the ground for the next two years. The community wants and needs to know what is going on," Westergren said. To that end, Westergren said he decided to put the developer's "feet to the fire" to get answers as to when construction would be resumed, he said. A storm sewer line needs to be repaired and rerouted to Thompson Street, Westergren said. A manhole needs to be moved south to Merchant Street. City officials previously thought that an agreement had been successfully worked out with Gierczyk's company to share in the cost -- about $300,000 total, Westergren said. Even though the development company initially agreed to share the costs, Westergren said, the developer later indicated that he would not. City officials recently met with Gierczyk's attorney to discuss the issue. They also sought to quell rumors circulating concerning the financial viability of the development company. "His lawyer was asked point-blank if there was any possibility that Gierczyk's company was going into bankruptcy," Westergren said. "He assured us that this is not the case."